John Milne

When it comes to acquisition valuations , relying solely on EBITDA multiples often provides an incomplete picture. While EBITDA captures a company's operational performance, it overlooks key aspects like financial stability, liquidity, and long-term profitability. To gain a more accurate and holistic understanding of a business’s value, incorporating additional financial ratios is essential. Below, I’ll outline seven critical ratios that go beyond EBITDA multiples , explaining their relevance and how they contribute to more precise valuations. 1. Price-to-Earnings (P/E) Ratio The Price-to-Earnings (P/E) ratio is one of the most widely recognized valuation metrics. It compares a company’s market price per share to its earnings per share (EPS). This ratio offers insight into how much investors are willing to pay for each dollar of earnings, making it a useful tool for assessing market sentiment and growth expectations. A high P/E ratio often indicates that the market expects strong ...

When valuing a business, EBITDA multiples often come into play as a popular and straightforward tool. EBITDA, which stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, focuses on a company’s core operational performance. By applying a multiple to EBITDA, you can estimate the value of a company while ignoring variables like tax structures, financing decisions, and accounting policies. However, while EBITDA multiples are widely used in mergers and acquisitions (M&A), private equity, and financial assessments, they are not without their limitations. Over my career, I’ve observed both the strengths and pitfalls of this method, and I’ll explain how it works, when it’s useful, and the risks of relying on it exclusively. What Are EBITDA Multiples? EBITDA multiples are used to estimate a company’s value based on its earnings before deductions for interest, taxes, depreciation, and amortization. The formula is simple: Business Value = EBITDA × Multiple The multiple ...

Mollitiam Holdings, LLC is pleased to announce that it has partnered with the management of Farren International and US Service Group to form Farren Holdings. This new entity combines the strengths of both companies to create one of the largest providers of specialty transport, logistics, warehousing, and industrial rigging services in the United States. PALM BEACH GARDENS, Fla.  , Nov. 13, 2024 /PRNewswire-PRWeb/ -- Mollitiam Holdings, LLC is pleased to announce that it has partnered with the management of Farren International and US Service Group to form Farren Holdings. This new entity combines the strengths of both companies to create one of the largest providers of specialty transport, logistics, warehousing, and industrial rigging services in the United States.  Read More.

  As decentralized teams become more prevalent across industries, they bring flexibility and access to a global talent pool. However, they also require leaders to adopt strategies that account for differences in time zones, cultures, and work habits. Drawing from years of experience managing distributed teams, I’ll share practical approaches to keep communication clear, productivity high, and morale strong. 1. Prioritize Transparent Communication Transparent communication is foundational for decentralized teams. When team members are spread across different locations, establishing clear channels for communication is essential. In my experience, using platforms like Slack or Microsoft Teams for real-time messaging helps everyone stay in the loop. Weekly emails or bulletins summarizing key points and decisions made in meetings allow team members to catch up at their own pace, preventing misunderstandings. Promoting a culture of transparency means everyone has access to the same inf...

  In today’s rapidly changing business world , growth is more than just an option—it’s a necessity for companies that want to stay competitive. One of the most effective ways to achieve growth is through acquisitions. Acquiring other companies accelerates expansion and opens doors to new technologies, markets, and talent. Embracing acquisitions as a core strategy allows businesses to grow faster than they could through organic efforts alone. In this article, I’ll explore how acquisitions are shaping the future of business growth and what companies need to know to embrace this strategy effectively. Why Acquisitions Drive Future Growth Acquisitions provide businesses with the opportunity to grow quickly and efficiently by integrating the strengths of another company. Rather than starting from scratch in a new market or spending years developing technology, a company can acquire those capabilities through a well-executed acquisition. For example, tech giants like Google and Microsoft ...